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9 Cards in this Set
- Front
- Back
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What is a set-up candle? |
A candle that is potentially setting up a trade the next day |
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What is a confirmation candle? |
The first candle that closes above or below the set-up candle in the direction of the setup |
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What is a follow-through candle? |
A candle that closes above or below the high of the confirmation candle in the direction of the trade |
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What is a neutral or hold candle? |
A candle that closes inside the high and low of the previous day |
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What is a reversal candle? |
The candle that reverses the action of the previous day. It is a failure |
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What are the three stages of a trade? |
1 set up candle 2 confirmation candle 3 follow through candle |
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What are the stages of a failure candle? |
1 a setup candle 2 a reversal candle 3 a confirmation candle and 4 a follow-through candle |
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How do you trade a set-up candle? |
Buy above or below the high or low in the direction of the trade or the reversal. If neutral wait. |
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When do you exit a trade? |
On a reversal candle, on the confirmation of the reversal candle, or hitting your profit Target |
